DuPont Decomposition
Why does EXICOM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-42.1% = -23.8% × 0.58 × 3.05
Latest: FY2026
Profitability
Net Margin
-23.8%
0.6% →-23.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
1.40x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.05x
2.72x →3.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 44.4 pp over 5 years. Driven by net margin declining (0.6% → -23.8%), asset turnover declining (1.40x → 0.58x), leverage rising (2.72x → 3.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 1.40 | 2.72 | 2.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 1.00 | 3.04 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 1.01 | 1.40 | 8.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.7% | 0.52 | 2.72 | -17.9% |
| FY2026 | ₹0Cr | ₹-0Cr | -23.8% | 0.58 | 3.05 | -42.1% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.